Denmark is ready to step up its currency interventions to stamp out any lingering speculation the central bank may be unable to defend its euro peg.
“We have plenty of kroner,” Karsten Biltoft, head of communications at the central bank in Copenhagen, said in a phone interview. “We have the necessary tools in terms of interest-rate changes and interventions, and we have a sufficient supply of Danish kroner.”
The comments follow the central bank's second rate cut in less than a week, with Governor Lars Rohde lowering the benchmark deposit rate to a record minus 0.35 percent today. That was more than expected by most economists surveyed by Bloomberg and followed a 15 basis-point cut on Monday. The easing comes as the European Central Bank (ECB) unveils an historic bond-purchase program.
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